Unity Bank Clarifies AMCON Stake Sale, Shareholders Approve Merger with Providus Bank

Unity Bank’s Chairman, Hafiz Bashir, has clarified that the Asset Management Corporation of Nigeria’s 34% stake in the bank was sold to an existing shareholder, not Providus Bank, as previously reported.

The sale, worth N6.5 billion, involved four billion Unity Bank shares traded at N1.66 per share on the Nigerian Exchange Limited.

Despite the clarification, Unity Bank shareholders have given the green light to the proposed merger with Providus Bank.

At a court-ordered meeting, 99.32% of participating shareholders, representing N4.4 billion in value, voted in favor of the merger.

According to the merger terms, Unity Bank shareholders will receive N3.18 per share or be allotted 18 ordinary shares of N0.50 each in Providus Bank Limited for every 17 ordinary shares of Unity Bank Plc held. Upon completion, Unity Bank’s share capital will be cancelled, and the bank will be dissolved without winding up.

Providus Bank Limited will retain its certificate of incorporation as the enlarged bank.

Bashir expressed optimism about the merger, stating that it marks the beginning of a new chapter that will deliver greater value to shareholders, customers, and the Nigerian economy. The Central Bank of Nigeria had earlier approved the merger, granting a N700 billion lifeline loan to recapitalize the combined entity.

The merger is expected to create a stronger financial institution with a solid capital adequacy ratio, extensive branch network, and enhanced capacity to support households, businesses, and government.